SEP IRA - Ocho

Ocho Learning Center

January 25, 2023
What Is a Self-Directed SEP IRA and How Does It Work?

A SEP IRA (Simplified Employee Pension) is an individual retirement plan for business owners with or without employees. Employees can contribute up to $61,000 for 2022 or $66,000 for 2023. Contributions are made with pre-tax income and are tax deductible and tax deferred until you take qualified distributions in retirement. With a regular SEP IRA, […]

December 23, 2022
SEP IRA vs SIMPLE IRA: Similarities and Differences

The SEP IRA and SIMPLE IRA are both retirement plans available to business owners. They offer higher contribution limits than a Roth or traditional IRA, and are easy to set up and maintain compared to a regular 401k plan. However, the two accounts differ in objective and function. The SEP IRA is more advantageous for […]

December 21, 2022
Comparing IRAs: SEP vs Roth vs Traditional

There are many different kinds of IRAs, each with its own set of rules and benefits. A traditional IRA and Roth IRA are the most similar. They have the same contribution limits and eligibility rules, but only really differ in when and how they get taxed. A SEP IRA is actually closer in function to […]

contribute to sep ira and solo 401k
SEP IRA +1 Solo 401k
December 05, 2022
Can I Contribute To A SEP IRA And Solo 401k At The Same Time?

One of the most common questions that comes up with business owners looking to set up a retirement plan is: Can I contribute to both a SEP IRA and a solo 401k, and will doing so allow me to contribute more money per year? Yes, in certain instance, if you have two separate businesses, you can […]

sep ira tax deductions
December 05, 2022
How Much Will A SEP IRA Reduce My Taxes?

Looking to reduce your taxable income this year? Maxing out a SEP IRA could give you one of the highest tax deductions possible this year.  Your taxable income can get reduced by up to $61,000 in 2022 and $66,000 in 2023 by maxing out contributions to your SEP IRA. How taxes get reduced through retirement plan contributions Some […]

401k vs sep ira
401k +1 SEP IRA
December 05, 2022
401k Vs SEP IRA: Key Differences

If you’re a business owner, you have the option to open a SEP IRA or 401k at your company. These accounts can only be opened by a business owner; employees cannot establish a 401k or SEP IRA on their own, like they could with an IRA. The main difference between the two accounts is that a business […]

w2 employee sep ira
December 05, 2022
Can A W-2 Employee Contribute To A SEP IRA?

If you’re a W-2 employee, your employer may choose to offer a SEP IRA as an alternative to a full employer-sponsored 401k plan. As an employee, you cannot make direct contributions to a SEP IRA, like you could with a 401k. A SEP IRA is like a simpler, more cost-effective alternative to offering a 401k plan. Smaller companies […]

sep ira equal contributions
December 05, 2022
SEP IRA Equal Percentage Contributions

OVERVIEW A SEP IRA has a few unique contribution rules if you have employees in your business. Only an employer can contribute to a SEP IRA; employees cannot contribute to their own accounts. When you make employer contributions, you’re obligated to make equal percentage contributions to every eligible employee’s accounts. What is the equal percentage […]

sep ira withdrawals
December 05, 2022
SEP IRA Withdrawal Rules & Penalties Explained

Contributions to a SEP IRA are made with income that hasn’t been taxed yet. You get a tax deduction each year you contribute and investments in your account grow tax-deferred until retirement. A SEP IRA has similar withdrawal rules as a traditional IRA. Once you contribute to your account, you cannot withdraw from it until you reach the […]

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